Hibor hits three-month low as HKD weakens

Email to Friend

Hibor hits three-month low as HKD weakens

The one-month Hong Kong Interbank Offered Rate, which is linked to the mortgage rate, fell below 1 percent to 0.99857 percent yesterday, hitting its lowest level in three months.
The overnight Hibor slid to 0.73786 percent and the one-week Hibor declined to 0.83143 percent, according to the Hong Kong Association of Banks. The two-week Hibor dropped to 0.86000 percent.
The three-month Hibor fell ...

Your Name:

Your Email:

Your Friend's Email:

Enable Javascript for audio controls

Type the text:

Message:

The one-month Hong Kong Interbank Offered Rate, which is linked to the mortgage rate, fell below 1 percent to 0.99857 percent yesterday, hitting its lowest level in three months.
The overnight Hibor slid to 0.73786 percent and the one-week Hibor declined to 0.83143 percent, according to the Hong Kong Association of Banks. The two-week Hibor dropped to 0.86000 percent.
The three-month Hibor fell to 1.70393 percent. The six-month Hibor decreased to 2.11286 percent, while one-year Hibor rose to 2.44 percent.
In addition, the Hong Kong dollar has weakened to 7.8469 against the US dollar.
A business insider predicted the Hibor to drop further after the Lunar New Year, which put pressure on the USD-HKD exchange rate. And the rate may reach 7.85 in the short run, triggering the weak-side Convertibility Undertaking.
The Hong Kong Monetary Authority has purchased Hong Kong dollars over the past year to ensure the HK dollar exchange rate will not weaken beyond 7.85 against the US dollar.
Meanwhile, the HKMA said foreign exchange reserves rose US$73 billion (HK$58.4 billion) to US$ 432 billion at the end of January from the previous month.
Including unsettled foreign exchange contracts, Hong Kong foreign exchange reserves amounted to US$424.9 billion in January, which was US$74 billion higher than December. The total foreign currency reserve assets of US$432 billion represent about seven times the currency in circulation in Hong Kong.